Malaysian diversified conglomerate Sime Darby has cancelled an initial public offering (IPO) for its automotive business which was aimed at raising up to US$500m.

The funds were to have been used to expand the company’s automotive business, which currently comprises auto parts production and vehicle assembly in Malaysia and distribution/sales operations in 10 countries across the region for brands such as BMW, Hyundai, Kia, Ford, Mazda and Hino. 

In Malaysia, it assembles BMW, Mini, Mazda and Inokom vehicles in Kedah state.

The company, which had previously delayed the IPO in the first quarter of 2015, said it will wait for the “market to be more conducive for this exercise”.